Commbank expands zero-interest credit card to support boom in millennial business owners
In response to more millennials becoming entrepreneurs over the past year, the Commonwealth Bank has now extended its zero-interest credit card ‘Neo’ to small business customers.
‘Neo’ was launched some eight months ago to compete with the rise of Buy Now Pay Later products, and came soon after fellow big bank NAB’s release of its own version of a zero-interest credit card called StraightUp.
While this product was initially meant for consumers, CommBank’s latest research suggests younger small business owners are another untapped market.
CommBank found that customers aged 25 to 40 made up more than half of all its new business transaction accounts in the last six months. These millennials accounted for 57% of new bank accounts during this period, while Gen Zers (those aged 24 or younger) opened another 10% of new accounts.
The research also revealed that the portion of millennials with a side hustle has risen by a massive 40% over the past year.
“While it’s been a challenging year for many small businesses, the pandemic did present entrepreneurs with the time and opportunity to start a small business as a passion project or an alternative source of income and we’ve seen many of our new business customers skewing younger,” CommBank’s executive group manager of small business banking, Claire Roberts said.
How does Neo for businesses work?
The CommBank Neo Business card will provide eligible small business customers with up to $3,000 in credit. There are no interest repayments, late fees or foreign currency fees, making it a budget friendly option for small businesses making both domestic and international purchases. You’ll need to factor in just a monthly fee, which varies depending on your credit limit:
- $12 per month for a $1,000 limit
- $18 per month for a $2,000 limit
- $22 per month for a $3,000 limit
The good news is if you make no purchases one month and your card balance is zero, then you’ll have that monthly fee refunded.
CommBank Neo Business also comes with accounting software integration, allowing the big bank to share your spending data automatically with Xero or MYOB.
For more information about this card, read Mozo’s CommBank Neo Review.
Or if you’d like to find out how Neo weighs up against regular business credit cards in the market, check out our business credit card comparison tool.